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Bus Law

- MaxiMart, Inc. is a discount retailer whose customer service employees are on strike. Sixty workers are blocking the entrances to one of MaxiMart's stores. To remove the workers, MaxiMart should seek an injunction from a court. - Inferior Company sells poorly made products. Jock, who has never bought an Inferior product, is suing the company alleging its products are defective. Inferior's best argument for dismissal is that Jock lacks standing to sue. - Mabel denies Loren's claim that she failed to pay for harvesting her orchards. Mabel counterclaims that Loren breached their contract and owes her money.

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100% found this document useful (1 vote)
10K views40 pages

Bus Law

- MaxiMart, Inc. is a discount retailer whose customer service employees are on strike. Sixty workers are blocking the entrances to one of MaxiMart's stores. To remove the workers, MaxiMart should seek an injunction from a court. - Inferior Company sells poorly made products. Jock, who has never bought an Inferior product, is suing the company alleging its products are defective. Inferior's best argument for dismissal is that Jock lacks standing to sue. - Mabel denies Loren's claim that she failed to pay for harvesting her orchards. Mabel counterclaims that Loren breached their contract and owes her money.

Uploaded by

jiniepie
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Question 1

0 out of 3 points MaxiMart, Inc., is a discount retailer. MaxiMart's customer service employees are on strike. Sixty of the workers block the entrances to one of MaxiMart's stores. To get them away from the doors, MaxiMart should seek Answer Selected Answer: Correct Answer: b. an order of due process. a. an injunction. 3 out of 3 points Inferior Company sells products that are poorly made. Jock, who has never bought an Inferior product, files a suit against Inferior, alleging that its products are defective. The firm's best ground for dismissal of the suit is that Jock does not have Answer Selected Answer: Correct Answer: a. standing. a. standing. 3 out of 3 points Loren files a suit against Mabel, alleging a failure to pay for the harvest of Mabel's orchards. Mabel denies Loren's charge and claims that Loren breached their contract to harvest a certain number of acres and owes Mabel money for the breach. Mabel's claim is Answer Selected Answer: Correct Answer: c. a counterclaim. c. a counterclaim. 0 out of 3 points Indelible Fabrics, Inc. (IFI), makes "Jean's Denim," a famous brand of clothing. Without IFI's consent, Kopy Company (KC) begins to use "jeansdenim" as part of a domain name. IFI files a suit against KC and engages in service of process. Service of process must provide Answer Selected Answer: Correct Answer: c. space to fill in important information and time in which to do it. d. notice and an opportunity to respond. 3 out of 3 points Reusable Energy Corporation regularly expresses opinions on political issues. Under the First Amendment, corporate political speech is Answer

Question 2

Question 3

Question 4

Question 5

Selected Answer: Correct Answer:

b. protected. b. protected. 3 out of 3 points

Question 6
Lacey files a suit in Michigan against Ned over the ownership of a boat docked in a Michigan harbor. Lacey and Ned are residents of Ohio. Ned could ask for a change of venue on the ground that Ohio Answer Selected Answer: Correct Answer: c. is a more convenient location to hold the trial. c. is a more convenient location to hold the trial. 3 out of 3 points Jo files a suit against Lara in a Missouri state court. Lara's only connection to Missouri is an ad on the Web originating in Nebraska. For Missouri to exercise jurisdiction, the issue is whether Lara, through her ad, has Answer Selected Answer: Correct Answer: b. conducted substantial business with Missouri residents. b. conducted substantial business with Missouri residents. 0 out of 3 points Adult Shoppe in Beach City sells a variety of publications, including child pornography. Beach City enacts an ordinance prohibiting the sale of such materials. This ordinance is most likely Answer Selected Answer: Correct Answer: a. an unconstitutional restriction of speech. d. constitutional under the First Amendment. 3 out of 3 points Iowa enacts a law that restricts certain kinds of advertising to protect consumers from being misled. This law would likely be held by a court to be Answer Selected Answer: Correct Answer: d. constitutional under the First Amendment. d. constitutional under the First Amendment. 3 out of 3 points Craig is a state court judge. In his court, as in most state courts, legal and equitable remedies have merged. But it is important to distinguish between equitable and legal remedies Answer

Question 7

Question 8

Question 9

Question 10

Selected Answer: Correct Answer:

c. to request a proper remedy. c. to request a proper remedy. 3 out of 3 points

Question 11
Jason files a suit against Maybelline. If Maybelline fails to respond, Jason Answer Selected Answer: Correct Answer: c. will be awarded the remedy sought. c. will be awarded the remedy sought. 3 out of 3 points Child's Play, Inc., sells a toy with a dangerous defect. Drew buys the toy for his son but discovers the defect before the child is injured. Drew files a suit against Child's Play. The firm's best ground for dismissal of the suit is that Drew does not have Answer Selected Answer: Correct Answer: b. standing to sue. b. standing to sue. 3 out of 3 points All-USA Imports, Inc., disputes the use of "all-usa.com" as a domain name by All-USA Overseas Exports, Ltd., and files a suit to resolve the dispute. Service of process must be by Answer Selected Answer: Correct Answer: d. whatever means is reasonably calculated to do the job. d. whatever means is reasonably calculated to do the job. 3 out of 3 points The U.S. Congress enacts a new federal statute that imposes liability on businesses emitting significant amounts of a certain pollutant into the environment. This statute applies Answer Selected Answer: Correct Answer: a. to all of the states. a. to all of the states. 0 out of 3 points Leona enters into a contract with Munchie Bakery to cater a sales conference. When the conference is postponed indefinitely, Leona asks a court to cancel the contract. This request involves Answer

Question 12

Question 13

Question 14

Question 15

Selected Answer: Correct Answer:

c. an unenforceable demand. d. an equitable remedy. 0 out of 3 points

Question 16
Xtreme Publications, Inc., disseminates obscene materials. This is Answer Selected Answer: Correct Answer: a. a right under the commerce clause. c. a crime under numerous state and federal statutes. 3 out of 3 points Brad stands in front of Rustler's Round-Up Caf, shouting "fighting words" that are likely to incite Rustler's patrons to respond violently. The First Amendment protects such speech Answer Selected Answer: Correct Answer: a. none of the time. a. none of the time. 0 out of 3 points In a suit against Owen over the performance of their contract, Phil obtains specific performance. This is Answer Selected Answer: Correct Answer: d. an order to do or to refrain from doing a particular act. b. an order to perform what was promised. 3 out of 3 points 3D HD TV Company, a firm in Minnesota, advertises on the Web. A court in North Dakota would be most likely to exercise jurisdiction over 3D HD if the firm Answer Selected Answer: Correct Answer: b. conducted substantial business with North Dakota residents through its Web site. b. conducted substantial business with North Dakota residents through its Web site. 3 out of 3 points Lora is a resident of Illinois. Ned is a resident of Wisconsin. They dispute the ownership of a boat docked in a Michigan harbor. This diversity of citizenship could serve as a basis for Answer Selected Answer: b.

Question 17

Question 18

Question 19

Question 20

federal jurisdiction. Correct Answer: b. federal jurisdiction. 0 out of 3 points The police obtain a search warrant and search Errol's apartment. After yelling obscenities at the officers, Errol confesses to a crime and implicates his friends. The Constitution protects against Answer Selected Answer: Correct Answer: b. implication of others. c. unreasonable searches. 0 out of 3 points As a judge, Diane applies common law rules. These rules develop from Answer Selected Answer: Correct Answer: b. statutes enacted by Congress and the state legislatures. d. decisions of the courts in legal disputes. 3 out of 3 points Quin files a suit against Regal Products, Inc. Regal responds that even if Quin's statement of the facts is true, according to the law Regal is not liable. This is Answer Selected Answer: Correct Answer: d. a motion to dismiss. d. a motion to dismiss. 3 out of 3 points Kyle files a suit against Lora. The document that informs Lora that she is required to respond is Answer Selected Answer: Correct Answer: d. the summons. d. the summons. 3 out of 3 points Opal files a complaint in a suit against Phil, and he files an answer. The case may now be Answer Selected Answer: a. dismissed or settled at this point.

Question 21

Question 22

Question 23

Question 24

Question 25

Correct Answer:

a. dismissed or settled at this point. 3 out of 3 points

Question 26
Parker owns and operates Rancho Mirage Corporation, a destination resort in Arizona that features horseback riding and bunkhouse accommodations. The Constitution provides that no person shall be deprived of "life, liberty, or property without due process of law." Included as "legal persons" under this clause are Answer Selected Answer: Correct Answer: b. the corporation and Parker. b. the corporation and Parker. 3 out of 3 points Maggie and Nate enter into a contract for the sale of car, but Nate later refuses to deliver the goods. Maggie asks a court to order Nate to perform as promised. Ordering a party to perform what was promised is Answer Selected Answer: Correct Answer: b. an equitable remedy. b. an equitable remedy. 3 out of 3 points Ginger wants to file a suit against Fred. For a court to hear the case Answer Selected Answer: Correct Answer: a. the court must have jurisdiction. a. the court must have jurisdiction. 3 out of 3 points Wyoming enacts a statute that limits the liberty of all persons, including corporations, to broadcast "annoying" radio commercials. This may violate Answer Selected Answer: Correct Answer: c. substantive due process. c. substantive due process. 3 out of 3 points Congress enacts a law prohibiting toys made in China from being sold in the United States. The Hawaii state legislature enacts a law allowing the sale of Chinese-made toys. Hawaii's law will most likely be Answer

Question 27

Question 28

Question 29

Question 30

Selected Answer: Correct Answer:

c. rendered invalid under the supremacy clause. c. rendered invalid under the supremacy clause. 0 out of 3 points

Question 31
Emil wants to initiate a suit against Fast Credit Company by filing a complaint. The complaint should include Answer Selected Answer: Correct Answer: b. an explanation of the proof to be offered at trial. a. a statement alleging the facts showing the court has jurisdiction. 3 out of 3 points The River City Council, the Santa Clara County Board, the Texas state legislature, and the U.S. Congress enact laws. These laws constitute Answer Selected Answer: Correct Answer: c. statutory law. c. statutory law. 3 out of 3 points Tyler, a citizen of Utah, files a suit in a Utah state court against Veritas Sales Corporation, a Washington state company that does business in Utah. The court has original jurisdiction, which means that Answer Selected Answer: Correct Answer: a. the case is being heard for the first time. a. the case is being heard for the first time. 3 out of 3 points Minnesota enacts a statute to ban advertising in "bad taste." This statute would likely be held by a court to be Answer Selected Answer: Correct Answer: b. an unconstitutional restriction of speech. b. an unconstitutional restriction of speech. 3 out of 3 points Rolf, a citizen of New Mexico, wants to file a suit against Sandy, a citizen of Texas. Their diversity of citizenship may be a basis for Answer

Question 32

Question 33

Question 34

Question 35

Selected Answer: Correct Answer:

d. a federal court to exercise original jurisdiction. d. a federal court to exercise original jurisdiction.

Saturday, October 8, 2011 4:44:36 PM PDT

Question 1 1 out of 1 points Dirk is driving a sport utility vehicle in which Elin is a passenger when they are involved in a traffic accident, and Elin is injured. Liability may be imposed on Dirk for Elin's injury if Dirk's driving is Answer Selected Answer: a. the causation in fact and the proximate cause of the injury. Correct Answer: a. the causation in fact and the proximate cause of the injury.

Question 2 1 out of 1 points Bette backs out of City Parking Garage, colliding with Dill's car. Dill may recover $7,500 to cover the cost of the repairs if Bette failed to act as Answer Selected Answer: b. a reasonable person. Correct Answer: b. a reasonable person.

Question 3 1 out of 1 points

Jaqy distributes a handbill among her neighbors accusing one of themKedof being a convicted sex offender. The statement is defamatory only if Answer Selected Answer: c. the statement is false. Correct Answer: c. the statement is false.

Question 4 1 out of 1 points Val, the owner of Wild Wheels, a bicycle store, trusts Xavier to manage the store's daily cash flow. One night, without Val's knowledge or consent, Xavier takes and keeps $500 from the receipts. This is most likely Answer Selected Answer: a. embezzlement. Correct Answer: a. embezzlement.

Question 5 1 out of 1 points Toni files a suit against Universal Media Corporation for defamation. Actual malice must be shown for recovery of damages if Toni is Answer Selected Answer: b. a public figure.

Correct Answer:

b. a public figure.

Question 6 1 out of 1 points Marie, a driver for Northern States Transport Company, causes a five-car accident on an interstate highway. Marie and Northern States are liable to Answer Selected Answer: a. only those whose injuries could reasonably have been foreseen. Correct Answer: a. only those whose injuries could reasonably have been foreseen.

Question 7 0 out of 1 points Glen falsely accuses Hu of stealing from Island Tours, Inc., their employer. Glen's statement is defamatory only if Answer Selected Answer: a. the statement is true. Correct Answer: d. a third party hears it.

Question 8 0 out of 1 points In relation to Edie's solicitation of investors in a nonexistent business, she is charged with "mail fraud." This requires, among other things, Answer

Selected Answer:

c. deceiving postal authorities as to the content of an item of mail.

Correct Answer:

d. mailing or causing someone else to mail a writing.

Question 9 1 out of 1 points Joe sees Karo floundering in Lake Rough Waters. Joe is liable on the ground of negligence Answer Selected Answer: d. under no circumstances. Correct Answer: d. under no circumstances.

Question 10 1 out of 1 points Molly shoots Norm with Opal's pistol. The proximate cause of Norm being shot is most likely attributable to Answer Selected Answer: b. Molly only. Correct Answer: b. Molly only.

Question 11 1 out of 1 points Leon files a suit against Moira, a medical doctor, alleging negligence. As a physician, Moira is

held to the standard of Answer Selected Answer: b. a reasonable physician. Correct Answer: b. a reasonable physician.

Question 12 1 out of 1 points Posing as Platinum Bank, Oswald e-mails Nadia, asking her to update her personal banking information through a link in the e-mail. She clicks on the link and types in the data, which Oswald promptly sells to Moe. This is Answer Selected Answer: c. phishing. Correct Answer: c. phishing.

Question 13 1 out of 1 points Pam files a successful suit against Quality Market based on Quality's negligence. Normally, an award in such a suit consists of Answer Selected Answer: d. compensatory damages. Correct Answer: d.

compensatory damages.

Question 14 1 out of 1 points Boris pushes Cordelia. She falls and breaks her arm. Boris is liable for the injury Answer Selected Answer: a. if he intended to push Cordelia. Correct Answer: a. if he intended to push Cordelia.

Question 15 1 out of 1 points Harvey puts up a guitar for bids on eWay, a Web auction site. Faith makes the highest bid and sends the payment, which Harvey receives, but he does not send the guitar to her. This is online Answer Selected Answer: a. auction fraud. Correct Answer: a. auction fraud.

Question 16 1 out of 1 points Nick sees Opal, a stranger, in peril, but does not attempt to rescue her. Opal could successfully sue Nick for Answer Selected Answer: d.

nothing. Correct Answer: d. nothing.


Question 17 1 out of 1 points Sam, an engineer, supervises the construction of a new bridge. When the bridge collapses due to faulty construction, Sam is sued by those injured in the collapse. As a professional, Sam is held to the same standard of care as Answer Selected Answer: d. other engineers. Correct Answer: d. other engineers.

Question 18 1 out of 1 points Jean sends e-mail to Irwin promising a percentage of the amount in an African bank account for assistance in transferring the funds to a U.S. bank account. Irwin forwards his account number, but the funds are never sent. Instead, Jean quickly withdraws the funds in Irwin's account. This is Answer Selected Answer: d. online fraud. Correct Answer: d. online fraud.

Question 19 0 out of 1 points

During a heated legislative debate, Representative Peony makes a statement of fact damaging Senator Rose's good reputation. Peony knows the statement is not true. In this situation, Peony is most likely Answer Selected Answer: d. liable for defamation. Correct Answer: a. not liable for defamation because Peony enjoys a privilege.

Question 20 1 out of 1 points Ethan, the president of Financial Investments, Inc. (FII), and Gina, FII's accountant, are charged with a crime, after the police search FII's offices. Under the exclusionary rule Answer Selected Answer: c. illegally obtained evidence must be excluded from a trial. Correct Answer: c. illegally obtained evidence must be excluded from a trial.

Question 21 1 out of 1 points Page points a knife at Ray's daughter, threatening to hold her hostage and "cut" her unless Ray takes a certain file from Skelter Supplies Corporation, his employer. Charged with theft, Ray can successfully claim as a defense Answer Selected Answer: a. duress.

Correct Answer:

a. duress.

Question 22 1 out of 1 points Ilise, an employee of Pyro Displays, Inc., pays Gavin, an employee of Pyro's competitor Fire Worx Company, for a secret Fire Worx pricing schedule. This may be Answer Selected Answer: b. commercial bribery. Correct Answer: b. commercial bribery.

Question 23 1 out of 1 points At Parkside Bistro, Ogden believes that he was overcharged and shoves Nellie, the waiter. Nellie sues Ogden, alleging that the shove was a battery. Ogden is liable Answer Selected Answer: b. if the shove was offensive. Correct Answer: b. if the shove was offensive.

Question 24 1 out of 1 points Ron, the manager of Sav-Mart Discount Store, detains Tina, whom Ron suspects of shoplifting. Tina sues Ron, alleging that the detention was false imprisonment. Ron is liable if Tina Answer

Selected Answer:

b. was detained for an unreasonably long time.

Correct Answer:

b. was detained for an unreasonably long time.

Question 25 1 out of 1 points Drew tells his Excel Company coworkers that Fiona, Excel's office manager, is stealing from their employer. The statement is defamatory only if Answer Selected Answer: d. the statement is false. Correct Answer: d. the statement is false.

Question 26 1 out of 1 points Ollie, an employee of Payroll Management Corporation, is arrested at work. A grand jury issues a formal charge against Ollie for larceny. This charge is Answer Selected Answer: c. an indictment. Correct Answer: c. an indictment.

Question 27 1 out of 1 points

Vance points a gun at Workman, threatening to shoot him. Workman hits Vance, causing his death. Charged with homicide, Workman can successfully claim as a defense Answer Selected Answer: a. self-defense. Correct Answer: a. self-defense.

Question 28 1 out of 1 points Deleon trespasses on Capital Corporation's property. Through the use of reasonable force, Capital's security guard Brenda detains Deleon until the police arrive. Capital is most likely liable for Answer Selected Answer: d. none of the choices. Correct Answer: d. none of the choices.

Question 29 1 out of 1 points Nesbit publishes in a newspaper an account of the sex life of Merinda, who is not a public figure. The information is true. This is most likely Answer Selected Answer: b. an invasion of privacy. Correct Answer: b.

an invasion of privacy.

Question 30 1 out of 1 points Amber shops in a Breezy Bargains store, whose employee Connor recently mopped the floor. Amber slips, falls, and suffers an injury. Breezy is liable to Amber on a negligence theory if there was a "Wet Floor" warning sign and Answer Selected Answer: d. Connor did not place the sign near the wet floor. Correct Answer: d. Connor did not place the sign near the wet floor.

Eve tells Finlay that she will pay him $50 if he unloads her truck. Finlay's acceptance is complete Answer Selected Answer: Correct Answer: c. only after Finlay unloads the truck. c. only after Finlay unloads the truck. 3 out of 3 points Berkie's bicycle is damaged in an accident caused by Imogene. Berkie agrees not to sue Imogene if she will pay for the damage. If she fails to pay, Berkie can bring an action for breach of contract. This is Answer Selected Answer: Correct Answer: c. a covenant not to sue. c. a covenant not to sue. 0 out of 3 points Dot, a real estate agent, tells Elbert, a home seller, that her commission is 12 percent. Elbert agrees that Dot can sell his house but refuses to sign a contract unless the amount of the commission is reduced. After Dot sells the house, Elbert refuses to pay 12 percent. Dot is most likely to recover Answer Selected Answer: b.

Question 2

Question 3

on a theory of an express contract. Correct Answer: a. on a theory of a quasi contract. 3 out of 3 points Interstate Coffee Brokers, Inc. (ICBI), offers to sell Java Roasters, Inc., fifty bags of coffee beans. Java rejects the offer. The offer is Answer Selected Answer: Correct Answer: a. terminated. a. terminated. 3 out of 3 points Business Properties, Inc. (BPI), offers to sell a warehouse to Corporate Investments. Corporate says that it will pay BPI $100 to hold the offer open for three business days. This Answer Selected Answer: Correct Answer: b. makes the offer irrevocable for three days if BPI accepts. b. makes the offer irrevocable for three days if BPI accepts. 3 out of 3 points Digital Architecture, Inc., agrees to design robotic software for equipment owned by Chassis Assembly Corporation. Whether or not this agreement meets all of the requirements of a contract, the parties are most likely to follow the rules of contract law because they Answer Selected Answer: Correct Answer: a. want to avoid potential disputes. a. want to avoid potential disputes. 3 out of 3 points Speedy Assembly Company promises its employees a 10-percent raise at the end of the year if productivity has increased and management feels it is warranted. Speedy must Answer Selected Answer: Correct Answer: b. do nothing. b. do nothing. 3 out of 3 points Quick Transport, Inc., offers to sell a truckload of palettes to Rapid Delivery Company. Before accepting the offer, Rapid learns that the palettes have been sold to Speedy Trucking Corporation. Quick is Answer

Question 4

Question 5

Question 6

Question 7

Question 8

Selected Answer: Correct Answer:

c. not liable, because the sale revoked the offer to Rapid. c. not liable, because the sale revoked the offer to Rapid. 3 out of 3 points

Question 9
Herm promises to pay Nixie to work as an assistant buyer for his Organic Foods stores. Nixie agrees and quits her job with Pic-U Grocery, but Herm does not hire her. Herm is most likely liable to Nixie under Answer Selected Answer: Correct Answer: a. the doctrine of promissory estoppel. a. the doctrine of promissory estoppel. 3 out of 3 points Expert Pavers, Inc., contracts with Fabricated Building Corporation to repave Fabricated's parking lot for which Fabricated agrees to pay. The elements of this, and any other, contract include Answer Selected Answer: Correct Answer: c. consideration. c. consideration. 3 out of 3 points Cherry is injured in an accident caused by Bronco. Bronco agrees to pay Cherry $2,500 if she agrees to release him from further liability. Cherry agrees. If Cherry's damages ultimately exceed $2,500, she can Answer Selected Answer: Correct Answer: c. not collect the balance from Bronco. c. not collect the balance from Bronco. 3 out of 3 points George and Hildy disagree as to the exact amount one owes the other. They form a new agreement that, on fulfillment, will discharge the prior obligation. This is Answer Selected Answer: Correct Answer: a. an accord and satisfaction. a. an accord and satisfaction. 3 out of 3 points Jack promises to buy Kelly's computer for $400. Jack is Answer

Question 10

Question 11

Question 12

Question 13

Selected Answer: Correct Answer:

d. a promisor. d. a promisor. 3 out of 3 points

Question 14
Debit & Credit Accounting Services and Brickwork Construction Company negotiate a contract. If it has all of the elements necessary for one of the parties to enforce it in court, it is Answer Selected Answer: Correct Answer: d. a valid contract. d. a valid contract. 3 out of 3 points Lilith promises to buy Marv's handheld game-player for $75. Marv is Answer Selected Answer: Correct Answer: c. a promisee. c. a promisee. 3 out of 3 points Homebuyers Mortgage Corporation's promise to pay its employees a year-end bonus "if it seems like a good idea at the time" is Answer Selected Answer: Correct Answer: d. an illusory promise. d. an illusory promise. 3 out of 3 points Joel contracts to hire Huong for one year to tend the orchids in his commercial greenhouse but reserves the right to cancel the employment on one month's notice at any time after Huong begins work. This promise is Answer Selected Answer: Correct Answer: b. enforceable. b. enforceable. 3 out of 3 points Gino files a suit against Free-Flo Plumbing Corporation under the doctrine of promissory estoppel. Gino must show that Answer

Question 15

Question 16

Question 17

Question 18

Selected Answer: Correct Answer:

c. he justifiably relied on Free-Flo's promise to his detriment. c. he justifiably relied on Free-Flo's promise to his detriment. 3 out of 3 points

Question 19
Mei writes a check to Nat in an amount that represents half of her debt to him. On the back of the check, Mei includes the words "payment in full." Nat cashes the check. This discharges the entire debt Answer Selected Answer: Correct Answer: d. if the debt is unliquidated. d. if the debt is unliquidated. 3 out of 3 points In a skateboarding accident with Ryan, Starla is injured. Ryan's insurance company's offers her $25,000 to release him from liability, and she accepts. Later, she learns that her injuries are more serious than she realized. The release Answer Selected Answer: Correct Answer: d. bars Starla's further recovery from Ryan. d. bars Starla's further recovery from Ryan. 3 out of 3 points State Bank offers to lend money to Rodeo Promotions, Inc., at 15 percent interest. Before Rodeo accepts, a statute is enacted prohibiting loans at interest rates greater than 12 percent. Rodeo and the bank have Answer Selected Answer: Correct Answer: d. no contract for a loan. d. no contract for a loan. 3 out of 3 points Crosby believes that he and Dakota agreed he would act as her personal sports trainer for seven workout sessions. In a later dispute, the existence of any contract can be judged by Answer Selected Answer: Correct Answer: c. the parties' statements at the time of their alleged contract. c. the parties' statements at the time of their alleged contract. 3 out of 3 points Phil agrees to work for Vacation Resorts, Inc., as a chef. In determining whether a contract has been formed, an element of prime importance is

Question 20

Question 21

Question 22

Question 23

Answer Selected Answer: Correct Answer: d. the parties' intent. d. the parties' intent. 3 out of 3 points Freida and Gail enter into a bilateral contract, which is created when Freida gives a promise in exchange for Gail's Answer Selected Answer: Correct Answer: a. promise only. a. promise only. 3 out of 3 points Yvon asks Zack, "Do you want to buy one of my fishing rods?" This is Answer Selected Answer: Correct Answer: c. not a valid offer because the terms are not definite. c. not a valid offer because the terms are not definite. 0 out of 3 points Bill offers to sell his Consumer Service Center business to Dina for $100,000. Dina replies, "The price is too high. I will buy it for $90,000." Dina has Answer Selected Answer: Correct Answer: a. made a counteroffer without rejecting the offer. b. rejected the offer and made a counteroffer. 3 out of 3 points Mary promises to pay her assistant Ned $10,000 in consideration of the services he provided over the years. Mary never pays Ned. Mary is Answer Selected Answer: Correct Answer: b. not liable, because the consideration is in the past. b. not liable, because the consideration is in the past. 3 out of 3 points Callie owns two trucks. She offers to sell the Dodge for $20,000 to Evan, who accepts. She offers to sell the Ford for $20,000 to Gwen, who says, "Too much." Callie's offer was terminated by

Question 24

Question 25

Question 26

Question 27

Question 28

Answer Selected Answer: Correct Answer: b. Gwen only. b. Gwen only. 3 out of 3 points Quik Fix-It, Inc., offers Pam a job as a plumber. No time for acceptance is specified in the offer. The offer will terminate Answer Selected Answer: Correct Answer: b. after a reasonable period of time. b. after a reasonable period of time. 3 out of 3 points Quinn promises to sell his recreational vehicle (RV) to Sid, who builds a structure behind his house in which to keep it. Quinn's later attempt to renege on the promise is Answer Selected Answer: Correct Answer: b. not effective if Sid detrimentally relied on Quinn's promise. b. not effective if Sid detrimentally relied on Quinn's promise. 3 out of 3 points Clay offers to pay Dorianne $50 for a golf lesson for Estee. They agree to meet the day after tomorrow to exchange the cash for the lesson. These parties have Answer Selected Answer: Correct Answer: a. a bilateral contract. a. a bilateral contract. 3 out of 3 points Sunshine Cell Phone Company offers to buy a laser printer, with a case of paper and an extra cartridge, from Office Products, Inc. (OPI), for $200. Paul, OPI's representative, says, "Okay, but no paper and no extra cartridge." Paul has Answer Selected Answer: Correct Answer: c. rejected the offer and made a counteroffer. c. rejected the offer and made a counteroffer. 3 out of 3 points

Question 29

Question 30

Question 31

Question 32

Question 33

Elmo advertises a reward for the return of his lost dog. Floyd, who does not know of the reward, finds and returns the dog. Floyd cannot recover the reward because he Answer Selected Answer: Correct Answer: b. did not know of the reward when he found and returned the dog. b. did not know of the reward when he found and returned the dog. 3 out of 3 points Retail Investment Company offers to sell a certain mall to Shopping Stores, Inc., if it accepts before 10 a.m. Monday. A contract is formed if Shopping Stores' acceptance is received Answer Selected Answer: Correct Answer: c. before 10 a.m. Monday. c. before 10 a.m. Monday. 3 out of 3 points Viola assures Wendell that she will deliver a truckload of pine seedlings to his tree farm. A person's manifestation of an intent to act in a specified way is part of the definition of Answer Selected Answer: Correct Answer: d. a promise. d. a promise. 3 out of 3 points Auto Body Repair Shop (ABRS) promises to pay Ben $1,000 a week to work for ABRS. Ben accepts and quits his job with Car Care Service. ABRS fails to provide a job for Ben. Ben has a cause of action based on Answer Selected Answer: Correct Answer: a. promissory estoppel. a. promissory estoppel. 3 out of 3 points Mona asserts that a deal she entered into with Nate is an unenforceable contract. Defenses to the enforcement of a contract include Answer Selected Answer: Correct Answer: c. the lack of a party's voluntary consent. c. the lack of a party's voluntary consent.

Question 34

Question 35

Question 36

Question 37

Question 38

3 out of 3 points Cassandra accepts what she believes was an offer to work for Destination Vacations, Inc., as a chef. In determining whether a contract has been formed, an element of prime importance is Answer Selected Answer: Correct Answer: c. the intent of the parties. c. the intent of the parties. 3 out of 3 points Domestic Auto Sales, Inc., promises its salaried employees a bonus at the end of the year if management thinks it is warranted. This promise is Answer Selected Answer: Correct Answer: c. unenforceable because it is not supported by consideration. c. unenforceable because it is not supported by consideration. 0 out of 3 points Grant offers to sell his Honda Civic for $10,000 to Ivy. Referring to the prices for similar Hondas, Ivy says, "I'll pay no more than $5,000." Grant says, "Forget it." Grant's offer was terminated by Answer Selected a. Answer: Grant. Correct Answer: Lyra induces Moe to enter into a contract for the sale of an apartment about which Lyra fraudulently misrepresents a number of material facts. Lyra tells Moe that her commission is 6 percent, but their signed, written contract states "12 percent." The Statute of Frauds governs Answer Selected Answer: d. contracts that must be in writing to be enforceable. Correct Answer: d. c. Ivy.

Question 39

Question 40

contracts that must be in writing to be enforceable.

Question 2
0 out of 3 points Cooper offers to sell Gable his sport utility vehicle (SUV) and says that it has never been in an accident. Relying on Cooper's statement, Gable buys the SUV. Later, when it develops mechanical problems, Gable can Answer Selected Answer: c. not rescind the contract. Correct Answer: a. rescind the contract on the basis of fraud.

Question 3
0 out of 3 points Lew believes an old comic book he owns has little value, but Murray is convinced it is a valuable collector's item. Lew sells it to Murray for $10 before learning it is worth $1,000. Lew can Answer Selected Answer: d. rescind the contract on the basis of mistake. Correct Answer: b. not rescind the contract.

Question 4
3 out of 3 points

At an auction for the first time, Max bids on an object, believing that it is worth more than the price asked. When the item proves to be less valuable, Max is Answer Selected Answer: b. liable on the bid. Correct Answer: b. liable on the bid.

Question 5
0 out of 3 points Steve agrees to assume a debt of Thumb Grippers Company to Main Street Bank. The agreement is not in writing. To be enforceable, the promise must be for the benefit of Answer Selected Answer: c. Thumb Grippers. Correct Answer: d. Steve.

Question 6
0 out of 3 points Niche Credit, Inc., is one of Cut-Rite Notching Corporation's two major creditors. Niche guarantees Cut-Rite's debt to the firm's other major creditor, Manufacturers Capital Bank, to forestall litigation. To be enforceable, this guarantee Answer Selected Answer: d.

must be in writing. Correct Answer: a. need not be in writing if it benefits Niche Credit.

Question 7
3 out of 3 points While a minor, Jason buys a large-screen HD TV and home theatre system that he continues to use after reaching the age of majority. After a reasonable time has passed, Jason will be considered to have Answer Selected Answer: a. ratified the contract. Correct Answer: a. ratified the contract.

Question 8
0 out of 3 points Solana, a minor, enters into a contract to buy a dozen movies from eHD TV Stream, Inc., an Internet video service. Solana reaches the age of majority and does not disaffirm the contract nor make payment on it. eHD files a suit against her. The court will most likely consider the contract ratified if it is Answer Selected Answer: b. express. Correct Answer: c. executed.

Question 9
3 out of 3 points Grandiloquent Properties, Inc., and Investment Capital Corporation enter into a contract for a sale of land. To be enforceable, the contract must be in writing if the land is valued at Answer Selected Answer: d. any price. Correct Answer: d. any price.

Question 10
0 out of 3 points Genie.com initiates an online dating service. To attract subscribers and encourage participation, Genie.com creates and posts profiles of fictitious persons and exaggerated profiles of actual users. Fooled by the false profiles, Ham buys a subscription. He is most likely a victim of Answer Selected Answer: b. mistake. Correct Answer: d. fraud.

Question 11
3 out of 3 points Stacy, a minor, charges the cost of an expensive leather jacket at a Girl's Trend store. Two nights later, Stacy loses the jacket at Minors Only Club. She disaffirms the jacket's purchase. Stacy owes Girl's

Trend the reasonable value of the jacket Answer Selected Answer: a. if it is deemed a "necessary." Correct Answer: a. if it is deemed a "necessary."

Question 12
3 out of 3 points Roc buys a farm from Steve, who claims that it would be a prime site for a housing subdivision. Roc later learns that the law does not permit the land to be used for housing. Roc may Answer Selected Answer: d. not rescind the contract. Correct Answer: d. not rescind the contract.

Question 13
3 out of 3 points Roxanne, a minor, is living at home with her parents, but signs a lease with a landlord to rent an apartment. Roxanne can Answer Selected Answer: a. disaffirm the lease without liability.

Correct Answer:

a. disaffirm the lease without liability.

Question 14
0 out of 3 points Natalie agrees to assume Orina's debt to Consumer Credit Corporation. Natalie does not get any personal benefit for the agreement. To be enforceable, the promise must be in writing if the debt is for Answer Selected Answer: a. more than $500. Correct Answer: d. any amount.

Question 15
3 out of 3 points Cary is fifteen. In most states, Cary would be considered a minor because she is under the age of Answer Selected Answer: d. eighteen. Correct Answer: d. eighteen.

Question 16
0 out of 3 points

Jack, a minor, takes out an automobile insurance policy and pays a $1,000 premium. If Jack disaffirms the contract, he can most likely recover Answer Selected Answer: c. nothing. Correct Answer: b. $1,000.

Question 17
3 out of 3 points Clay buys an MP3 player for $200 and a pair of stereo speakers for $600 from a Discount City store, and downloads $300 worth of digital music from E-Music.com. To be enforceable, the contract that must be in writing is the purchase of Answer Selected Answer: d. the speakers only. Correct Answer: d. the speakers only.

Question 18
3 out of 3 points Noni, a seventeen-year-old, signs a contract to sell her car to Metro Used Cars. The next day, Noni tells Metro that she's decided not to sell the car. Noni is Answer Selected Answer: c.

not liable to Metro. Correct Answer: c. not liable to Metro.

Question 19
3 out of 3 points Timber Farms, Inc., and Wood Products Corporation enter into an oral contract for the sale of a lumber mill and the land on which it is situated from Timber to Wood. Under the Statute of Frauds, this contract is enforceable by Answer Selected Answer: d. none of the choices. Correct Answer: d. none of the choices.

Question 20
3 out of 3 points Urban City and Thru-way Construction Company enter into a contract that includes calculations. Urban, whose engineer, Sergei, compiled the figures, discovers later that some numbers were added incorrectly, but Thru-way refuses to make changes. Urban can Answer Selected Answer: b. rescind the contract on the basis of mistake. Correct Answer: b.

rescind the contract on the basis of mistake.

Question 21
3 out of 3 points Kirk Custodial Service and Green Energy Company enter into an oral contract under which Kirk agrees to provide custodial service for Green's facilities for two years. This contract is enforceable by Answer Selected Answer: d. none of the choices. Correct Answer: d. none of the choices.

Question 22
3 out of 3 points Flem sells an all-terrain, off-road vehicle to Esteban without disclosing that the odometer, which reads 30,000 miles, was disconnected 50,000 miles ago. Flem is most likely liable for Answer Selected Answer: c. fraud. Correct Answer: c. fraud.

Question 23
0 out of 3 points

Rowan, a famous chef, sells to Patricia a restaurant that Rowan closed years ago. Patricia discovers in the restaurant a collection of Rowan's recipes, which are considered valuable. In a suit to obtain the recipes, Rowan will likely Answer Selected Answer: d. lose because the sale of a restaurant includes everything in it. Correct Answer: b. win because there was no voluntary consent to the sale of the recipes.

Question 24
3 out of 3 points Yvon, a golf pro, convinces Zach, who has no athletic ability, that he has considerable talent and induces him to pay Yvon $10,000 for golf lessons. When Zach realizes the truth, he files a suit against Yvon. Zach is most likely to recover on the basis of Answer Selected Answer: b. misrepresentation. Correct Answer: b. misrepresentation.

Question 25
3 out of 3 points Mica, a minor, signs a contract to pay National Fitness Club a monthly fee for twenty-four months to use its facilities. Six months later, after reaching the age of majority, Mica continues to use the club. This act is Answer

Selected Answer:

d. ratification.

Correct Answer:

d. ratification.

Question 26
3 out of 3 points Kurt persuades Leo to buy his bicycle by telling Leo that the bike rides "like the wind." Kurt's statement is Answer Selected Answer: a. puffery. Correct Answer: a. puffery.

Question 27
3 out of 3 points Intoxicated, Clio agrees to sell her restaurant, Diners Caf, to Evan for half of its real market value. This deal is most likely voidable if Clio Answer Selected Answer: d. is so intoxicated as to lack comprehension of the legal consequences. Correct Answer: d.

is so intoxicated as to lack comprehension of the legal consequences.

Question 28
0 out of 3 points Elle buys a new textbook for $100 and a used car for $5,000, and signs a one-year lease for an apartment for $1,000 monthly rent to start at the beginning of the next month. The Statute of Frauds covers Answer Selected Answer: a. the apartment lease only. Correct Answer: d. the apartment lease and the car purchase only.

Question 29
3 out of 3 points Garden & Yard Landscaping and Penelope enter into an oral contract under which she agrees to work on a Garden & Yard project on Valley Country Club's golf course for sixteen months. This contract is enforceable by Answer Selected Answer: d. none of the choices. Correct Answer: d. none of the choices.

Question 30

3 out of 3 points Boyd is a minor. As a minor, Boyd has the capacity to enter into Answer Selected Answer: d. a valid contract. Correct Answer: d. a valid contract.

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